TechCrunch’s MG Siegler says it “looks awesome” based on 50MB of images and documents (but not the actual app itself). He says it combines the features of megahit Instagram, the more private Path.com and even the Color app which is somewhat of a failure.

All Facebook’s Jackie Cohen reached out to Facebook to discuss this rumored app but was told they do not comment on rumors or speculation.

Assuming this Facebook photo app is released in the near future, what does it mean for apps like Instagram and even long time web services like Flickr and Photobucket? While not everyone in the world has a Facebook account (although it may seem like this is the case), the tens of millions of iPhone users among the hundreds of millions of Facebook users will instantly make Facebook’s photo app API the target for integration with other apps and web services. It may not displace apps like Instagram, but it certainly would have a major impact.

– Will Facebook change photo privacy settings without informing its users?
– Will the app inherit privacy settings from a person’s Facebook account?
– How will Facebook configure its face recognition software to work with their iPhone app?